Forex & Economic Commentary by Lloyds TSB

It is sometimes said that the first rule for Budgets should be: ‘do no harm’. Judging by the reaction of financial markets immediately after the 2010

It is sometimes said that the first rule for Budgets should be: ‘do no harm’. Judging by the reaction of financial markets immediately after the 2010 Budget this maxim seems to have been observed, with fairly little movement in bonds, equities, cash or the currency. However, it is far too soon to say whether this was a good Budget or not in the medium term, as this depends very much on how economic and financial events unfold relative to the assumptions in the Budget. What we do know is that, relative to the Pre-Budget Report (PBR) in 2009, there are few new announcements in the Budget at the macro level.

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